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Knowing the best insurance company ratings is integral to buying the best possible policies to cover your health, auto and life. It s not always the cheapest rate that will garner the best policy. Of course we d all like to spend less money on the necessities of life and more on the fun things but attention needs to be given to the qualifications of the companies and the adequacy of the coverage being supplied.

What Do Rating Companies Look For?

There are three major companies or services that are in the business of rating insurance companies. Independent rating agencies, these financial analysts make sure that the insuring company is financially sound and will be able to reliably meet its obligations when claims are filed. The rating process measures each company s overall strengths, evaluating ability to pay dividends, meet liabilities and, acting in the role of prophet, projects the company s future business prospects.

1. A.M. Best Company

Is the best known and most widely r (more...)

Life insurance is a necessity that most people understand. But what they often don t understand is the differences between term life insurance and whole life insurance.

There are three main differences between a term life insurance policy and a whole life insurance policy.

Insurance Difference #1

Value. Whole life and term life insurance both offer coverage as long as the policy is in effect. Meaning that as long as payments are being made both policies offer a pay out in the event of the policy holder passing away. But the main difference is that the only benefit to keeping the term life policy in effect is its death benefit payout.

A whole life insurance policy also builds a cash value, which can be withdrawn by taking a loan from the insurance company.

A term life insurance policy has no cash build up value.

Insurance Difference #2

Cost. Because a whole life insurance policy has a cash value feature it is more expensive. The extra expenses go towards the (more...)